Customer Relationship Management (CRM) is your overall strategy for dealing with your customers. It is the way you talk to your customers, when you interact with them, and how they’re being treated. CRM is often tied to CRM software, where all of your customer information is stored in one place. By using a centralized CRM tool, you have access to customer names, addresses, purchase history, and other information all in one place. One of the main ideas behind a CRM strategy is efficiency; by having all customer information managed in one place, you make better decisions.
CRM tools help track important numbers related to your customers. These tools tell you the status of all orders, how many outstanding customer service issues are open, what the average wait time is for a customer to get a response, or what feedback customers have given. Using this information, you can make better decisions. If your customers are waiting too long for answers, you know you need to shift resources to pay attention to meet this customer need. If you are losing more customers than bringing in, you might consider addressing your customer retention strategy.
CRM also relates to various levels of customers. It incorporates former, current, and prospective customers. By having centralized data on each of these groups, you can market better. You can customize the types of marketing for each group and easily mass produce distribution lists by exporting groups of customer data. Although each customer is different, a CRM system gives you the tools to find patterns, similarities, and trends with how groups of customers are acting. The ultimate goal of your CRM is to improve your relationships with your customers.